Bhutan Population: 750,125

Following Britain’s victory in the 1865 Duar War, Britain and Bhutan signed the Treaty of Sinchulu, under which Bhutan would receive an annual subsidy in exchange for ceding land to British India. Ugyen WANGCHUCK - who had served as the de facto ruler of an increasingly unified Bhutan and had improved relations with the British toward the end of the 19th century - was named king in 1907. Three years later, a treaty was signed whereby the British agreed not to interfere in Bhutanese internal affairs, and Bhutan allowed Britain to direct its foreign affairs. Bhutan negotiated a similar arrangement with independent India after 1947. Two years later, a formal Indo-Bhutanese accord returned to Bhutan a small piece of the territory annexed by the British, formalized the annual subsidies the country received, and defined India's responsibilities in defense and foreign relations. Under a succession of modernizing monarchs beginning in the 1950s, Bhutan joined the UN in 1971 and slowly continued its engagement beyond its borders. In March 2005, King Jigme Singye WANGCHUCK unveiled the government's draft constitution - which introduced major democratic reforms - and held a national referendum for its approval. In December 2006, the King abdicated the throne in favor of his son, Jigme Khesar Namgyel WANGCHUCK. In early 2007, India and Bhutan renegotiated their treaty, eliminating the clause that stated that Bhutan would be "guided by" India in conducting its foreign policy, although Thimphu continues to coordinate closely with New Delhi. Elections for seating the country's first parliament were completed in March 2008; the king ratified the country's first constitution in July 2008. Bhutan experienced a peaceful turnover of power following parliamentary elections in 2013, which resulted in the defeat of the incumbent party. The disposition of some 18,000 refugees of the roughly 100,000 who fled or were forced out of Bhutan in the 1990s - and who are housed in two UN refugee camps in Nepal - remains unresolved.

conventional long form: Kingdom of Bhutan conventional short form: Bhutan local long form: Druk Gyalkhap local short form: Druk Yul etymology: named after the Bhotia, the ethnic Tibetans who migrated from Tibet to Bhutan; Bod is the Tibetan name for their land; the Bhutanese name "Druk Yul" means "Land of the Thunder Dragon"

17 December 1907 (became a unified kingdom under its first hereditary king)

National holiday:

National Day (Ugyen WANGCHUCK became first hereditary king), 17 December (1907)

Constitution:

previous governing documents were various royal decrees; first constitution drafted November 2001 - March 2005, ratified 18 July 2008; amended 2011 (2016)

Legal system:

civil law based on Buddhist religious law

Suffrage:

18 years of age; universal

Executive branch:

chief of state: King Jigme Khesar Namgyel WANGCHUCK (since 14 December 2006); note - King Jigme Singye WANGCHUCK abdicated the throne on 14 December 2006 to his son

head of government: Prime Minister Tshering TOBGAY (since July 2013)

cabinet: Council of Ministers or Lhengye Zhungtshog members nominated by the monarch in consultation with the prime minister and approved by the National Assembly; members serve 5-year terms elections/appointments: the monarchy is hereditary but can be removed by a two-third vote of Parliament; leader of the majority party in Parliament is nominated as the prime minister, appointed by the monarch

Legislative branch:

description: bicameral Parliament or Chi Tshog consists of the non-partisan National Council or Gyelyong Tshogde (25 seats; 20 members directly elected in single-seat constituencies by simple majority vote and 5 members appointed by the king; members serve 5-year terms) and the National Assembly or Tshogdu (47 seats; members directly elected in single-seat constituencies by proportional representation vote to serve 5-year terms)

elections: National Council election last held on 23 April 2013 (next to be held in 2018); National Assembly election first round held on 31 May 2013 and second round on 13 July 2013

election results: National Council - seats by party - independent 20 (all candidates required to run as independents; National Assembly - first round - percent of vote by party - DPT 44.5%; PDP 32.5%; DNT 17.0%; DCT 5.9%; second round - percent of vote by party - PDP 54.9%, DPT 45.1%; seats by party - PDP 32, DPT 15

Judicial branch:

highest court(s): Supreme Court (consists of 5 justices including the chief justice); note - the Supreme Court has sole jurisdiction in constitutional matters judge selection and term of office: Supreme Court chief justice appointed by the monarch upon the advice of the National Judicial Commission, a 4-member body to include the Legislative Committee of the National Assembly, the attorney general, the Chief Justice of Bhutan and the senior Associate Justice of the Supreme Court; other judges (drangpons) appointed by the monarch from among the High Court judges selected by the National Judicial Commission; chief justice serves a 5-year term or until reaching age 65 years, whichever is earlier; the 4 other judges serve 10-year terms or until age 65, whichever is earlier

Bhutan's economy, small and less developed, is based largely on hydropower, agriculture, and forestry, which provide the main livelihood for more than half of the population. Because rugged mountains dominate the terrain and make the building of roads and other infrastructure difficult and expensive, industrial production is primarily of the cottage industry type. The economy is closely aligned with India's through strong trade and monetary links and is dependent on India for financial assistance and migrant laborers for development projects, especially for road construction. Bhutan inked a pact in December 2014 to expand duty-free trade with Bangladesh, the only trade partner with which Bhutan enjoys a surplus. Multilateral development organizations administer most educational, social, and environment programs, and take into account the government's desire to protect the country's environment and cultural traditions. For example, the government, in its cautious expansion of the tourist sector, encourages visits by upscale, environmentally conscientious tourists. Complicated controls and uncertain policies in areas such as industrial licensing, trade, labor, and finance continue to hamper foreign investment. Bhutan’s largest export - hydropower to India - could spur sustainable growth in the coming years if Bhutan resolves chronic delays in construction. Bhutan currently taps only 5% of its 30,000-megawatt hydropower potential and is behind schedule in building 12 new hydropower dams with a combined capacity of 10,000 megawatts by 2020 in accordance with a deal signed in 2008 with India. The high volume of imported materials to build hydropower plants has expanded Bhutan's trade and current account deficits. However, Bhutan and India in April 2014 agreed to begin four additional hydropower projects, which would generate 2,120 megawatts in total. Bhutan also is exploring energy exports to Bangladesh.

state-owned TV station established in 1999; cable TV service offers dozens of Indian and other international channels; first radio station, privately launched in 1973, is now state-owned; 5 private radio stations are currently broadcasting (2012)

lacking any treaty describing the boundary, Bhutan and China continue negotiations to establish a common boundary alignment to resolve territorial disputes arising from substantial cartographic discrepancies, the largest of which lie in Bhutan's northwest and along the Chumbi salient